Bankruptcies down, but experts say lull temporary

Boston Business Journal, June 23, 2006

Gayle Ehrlich, a partner in Sullivan & Worcester's Boston office, was quoted in the Boston Business Journal's article, "Bankruptcies down, but experts say lull temporary" which focused on the first quarter nationwide decline in bankruptcy filings by both individual and corporations due to the rush to get filings in before bankruptcy law change.

Gayle discussed that despite this decline, business remains strong and that she believes corporate bankruptcies are more likely to increase in the future, especially if interest rates continue to rise. "It makes sense that companies that are having a hard time meeting their financial obligations with rates low will have an even harder time with rates going on," Gayle said. "There's little question bankruptcies are going to go on the rise if there's a tightening up of the flow of cash."

For more information on this topic, please contact Gayle Ehlrich at 617.338.2453 or gehrlich@sandw.com